Hike in MSP for 14 Kharif crops for 2025-26 approved
New Delhi, May 28: The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved an increase in the Minimum Support Prices (MSP) for 14 Kharif crops for the 2025-26 marketing season. The revision aims to ensure that farmers receive remunerative prices for their produce, reinforcing the government’s continued focus on agricultural welfare.
Among the approved hikes, nigerseed has received the highest absolute increase in MSP at Rs 820 per quintal, followed by ragi at Rs 596, cotton at Rs 589, and sesamum at Rs 579 per quintal. This increase aligns with the Union Budget 2018-19 announcement, which pledged to fix MSPs at a minimum of 1.5 times the all-India weighted average cost of production.
The projected margins over the cost of production are estimated to be highest for bajra at 63%, followed by maize and tur at 59% each, and urad at 53%. For the remaining crops, the expected margin is around 50%. These margins underscore the government’s intent to support farmers with fair and profitable returns, particularly at a time of rising input costs and climate challenges.
In recent years, the government has actively promoted the cultivation of crops beyond cereals—especially pulses, oilseeds, and nutrient-rich millets (Shree Anna)—by offering comparatively higher MSPs for these varieties to encourage crop diversification and nutritional security.
Comparative data also highlights the government’s increased commitment to procurement. From 2014-15 to 2024-25, the total procurement of paddy stood at 7,608 lakh metric tonnes (LMT), compared to 4,590 LMT during 2004-05 to 2013-14. Procurement of all 14 Kharif crops during the same period rose to 7,871 LMT, up from 4,679 LMT in the preceding decade.
Similarly, the MSP payouts to paddy farmers rose significantly to Rs 14.16 lakh crore between 2014-15 and 2024-25, as compared to Rs 4.44 lakh crore during 2004-05 to 2013-14. For all 14 Kharif crops, the MSP disbursed during 2014-25 amounted to Rs 16.35 lakh crore, a substantial increase from Rs 4.75 lakh crore in the earlier period.
